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Truth Social CEO calls on House to investigate potential 'unlawful manipulation of DJT stock'

"Such an inquiry is needed to protect shareholders, including TMTG’s retail investors," Nunes says

Published: April 24, 2024 10:40am

Updated: April 24, 2024 12:26pm

Devin Nunes, CEO of the Trump Media & Technology Group, is asking House committee leaders to investigate the potential "unlawful manipulation of DJT stock."

In a letter to the committees, Nunes pointed out that DJT [the initials for Donald J. Trump] has appeared every day since April 2 on Nasdaq’s "Reg SHO threshold list," which he said is "indicative of unlawful trading activity."

The concern follows Trump Media & Technology Group, whose flagship product is social networking site Truth Social, began being traded late last month on the Nasdaq stock market.

"This is particularly troubling given that 'naked' short selling often entails sophisticated market participants profiting at the expense of retail investors," Nunes wrote in the letter released on Tuesday. "Reports indicate that, as of April 3, 2024, DJT was the single most expensive stock to short in U.S. markets by a significant margin, meaning that brokers have a significant financial incentive to lend non-existent shares."

The California Republican is also a former chairman of the House Permanent Select Committee on Intelligence.

Nunes also wrote that "data made available to us indicate that just four market participants have been responsible for over 60% of the extraordinary volume of DJT shares traded: Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital."

The former House Intelligence Committee chairman called on the committees to "open an investigation of anomalous trading of DJT to determine its extent and purpose, and whether any laws including RICO statutes and tax evasion laws were violated, so that the perpetrators of any illegal activity can be held to account."

He argued that "such an inquiry is needed to protect shareholders, including TMTG’s retail investors" and might also "shed light on the need for policy changes such as closing the Reg SHO loophole for market makers, requiring brokers to better document their efforts to locate and borrow stock, and stiffening penalties for illegal naked short sellers."

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